Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 15 Oct 2017 My Price 3.00

moral hazard problem

Suppose you are about to buy a car and ask to see a vehicle history report to check previous accidents or problems reported for that car. When you are told that this information is not available, you decide not to buy the car.

 

a) Do you think this example illustrates an adverse selection or moral hazard problem?

b) What is the lesson about the lack of information and the probability that a transaction will occur?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 15 Oct 2017 09:10 PM My Price 3.00

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